In recent times, lenders have had to take drastic measures to meet their dollar obligations due to a lack of foreign exchange in the country.
Some DMBs reduced the amount of PTA that customers can apply for on Tuesday from $4,000 to $2,000 in an email to customers.
Additionally, lenders reduced the cost of overseas school fees from $15,000 to $7,500 per semester.
First Bank of Nigeria Limited, one of the lenders, advised customers to make their various FX requests several weeks in advance.
The lender’s bulk email had the subject line “Important update on FX purchase.”
Additionally, the bank stated that the requests could only be made twice per year.
It advised customers to submit their travel applications several weeks in advance.
“At FirstBank, we value you and are committed to keeping you informed on changes regarding foreign currency (Form A) requests,” read one portion of the email. Please take note of the following due to the industry’s limited FX supply:
“Funds will be disbursed within the week of the trip for payment of PTA/BTA, which is limited to a maximum of $2,000 and two quarters in a year. Customers are encouraged to apply for PTA and BTA prior to their trip.
It added, “Application for upkeep is limited to two semesters per session and subject to a maximum of $1,500 (or its equivalent in other currencies) per semester.”
“School fees can only be paid for two semesters at a time and up to a maximum of $7,500 (or its equivalent in other currencies) per semester. After the documents and approved Form A have been submitted to the branch, it will take at least 16 weeks to process school fees and maintenance.
The email states that Form A applications for school fees, student upkeep, and PTA/BTA must be processed in accordance with regulatory requirements on the Trade Monitoring System of the Central Bank of Nigeria.
“Requests will continue to be treated on a first-come, first-served basis, subject to availability of FX,” it added. Make sure your account has enough money.
The Central Bank of Nigeria (CBN) has been advised to devalue the local currency in order to close the gap between the official rate and the parallel market rate of the naira.